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Savers can now get the best micro-fixed savings offers and acquire an account with 90 days’ notice with the savings and investment platform Prosper.
Prosper has raised rates on its savings accounts, leading to its You have 90 days notice*, Three-month solution* and Six-month solution* To the best purchases.
The increase is a platform hike in the interest rates offered by underlying banks and, unlike some rivals, Prosper is increasing the rates paid rather than offering a cash sign-up bonus.
Accumulation: Prosper now offers the best savings offers for savings accounts with 90 days notice, with a three-month fixed term and with a six-month fixed term
Savers can get an account with 90 days notice at 5.27 percent at Prosper*, with Santander Internacional being the deposit account provider.
The platform has also increased fees to offer a 5.3 percent fixed for six months in Prosper* and a 5.2 percent fixed rate for three months in Prosper*both with GB Bank.
Prosper is regulated by the FCA and savers have Financial Services Compensation Scheme savings protection up to £85,000 under Santander International and GB Bank on the accounts mentioned above.
Money in a Prosper account, rather than a savings account, is protected by HSBC and Barclays.
How the boost works
Santander International will credit the account daily with a rate of 5.02 percent, following the Bank of England base rate, with 90 days’ notice.
Prosper will then pay an additional 0.25 percent increase on each anniversary of account opening and on account closing to the designated bank account.
The 90-day notice account has a minimum deposit of £20,000 and a maximum balance of £1 million.
Deposits at Prosper are protected up to £85,000 under the FSCS. If Prosper or Santander International were to fail, any amount over £85,000 would not be protected.
Santander International may change the account margin above the base rate and Prosper may change the increase at any time. But if Santander International decreases the tracking margin or Prosper decreases the increase, you will be notified at least 104 days in advance.
GB Bank will pay an interest rate of 4.99 percent when the three-month term expires.
Prosper will then pay a 0.21 percent increase at the end of the three-month term to your designated bank account.
The three-month loan has a minimum deposit of £20,000 and a maximum balance of £85,000.
GB Bank will pay 5.02 percent interest when the six-month term expires.
Prosper will then pay a 0.28 percent increase at the end of the six-month term to your designated bank account.
The six-month fixed loan has a minimum deposit of £20,000 and a maximum balance of £85,000.
What is the appeal of a short-term solution?
Prosper’s short-term fixed rate accounts offer better rates than their long-term counterparts.
Right now, the best one-year fixed-rate accounts pay about 4.9 percent, while the best two- and five-year fixed-rate accounts pay about 4.7 percent and 4.3 percent respectively — and that means locking up money for longer.
Prosper’s 5.27 percent 90-day notice account outperforms Investec’s 5.25 percent 90-day notice account and blme’s 5.15 percent account.
The next best three-month solution is offered by the savings platform Raisin via Mizrahi Tefahot Bank and pays 5.15 percent, while the next best six-month solution also comes from Mizrahi Tefahot Bank via Raisin and pays 5.11 percent.
Should you fix your savings?
Fixed-rate savings accounts give savers the opportunity to lock in a guaranteed interest rate for a set period of time, which can range from a few months to five years.
This certainty will be attractive to some savers at a time when the Bank of England is planning further interest rate cuts. When this happens, savings rates will also be cut.
Last week, the Bank of England’s Monetary Policy Committee kept the key interest rate at 5 percent.
Experts predict that the base interest rate will reach 4.75 percent at the end of the year and then continue to fall to around 4 percent by the end of 2025, before finally settling at around 3.5 percent.
When the Bank of England cut the base rate to 5 per cent in August, This is Money analysis found that more than 100 savings accounts saw their rates cut in the week following the base rate cut, so the outlook for savings rates points in one direction from here: down.
What is Prosper and is your money safe?
Prosper is a savings and investment platform launched in 2022 with the mission of offering cheaper investments and better savings for customers. Prosper’s investment platform currently offers completely free investments in 30 index funds.
Its founder and CEO Nick Perrett and founder and chairman Ricky Knox worked together on launching challenger bank Tandem, while co-founder Phil Bungey was chief operating officer of Nutmeg.
As well as a cash savings account platform, powered by Akoni and Bondsmith, Prosper offers SIPP, ISA and general investment accounts.
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